An Introduction to SEDA Network

SEDA is a modular data layer that sets a new standard for data transport, access, and querying any data type from any source.

SEDA implements a fully modular interface that developers can use to determine what data feeds to fetch and how to use this data for computation. This approach ensures that developers receive results that can be readily integrated into their networks and/or smart contracts.

The Problem

Blockchain networks are isolated execution environments that cannot directly interface with data sources beyond their native environment, creating a fragmented landscape between blockchain networks and any data source from the traditional internet.

This isolation also prevents blockchain networks from unlocking the full potential of their technology, which relies heavily on its capability to query data beyond the boundaries of the network.

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Oracles also currently require native deployments for each feed type for each specific network. As a result, Oracle integrations face huge delays of up to six months and must be selective of the network they integrate with.

The Solution

SEDA’s approach eliminates the need for native deployment required by Oracles, enabling seamless, chain-agnostic integrations featuring protocol-led data feed configuration and customizable pricing models. Any protocol can access SEDA on a 100% permissionless basis promoting immediate integrations with same-day data access.

SEDA’s intent-enabling, chain-agnostic design points to a chain-abstracted future, set to act as a unification layer. Chain abstraction would allow consumers to interact Web3-wide from one point of entry while enabling developers to build application-specific networks that mitigate today’s siloed and fragmented environment. Specifically, SEDA works within the settlement layer of chain abstraction and allows for querying complex, cross-chain intents.

SEDA's Architectural Overview

SEDA Chain

The SEDA Chain is an application-specific blockchain built using the Cosmos SDK as a foundation.

The SEDA Chain acts as a settlement and checkpointing layer. It is also responsible for the network's security and consensus, as well as for generating the proofs that power SEDA’s interoperability with destination networks while acting as a single point of truth for all other components.

Destination Network

Any network can read and verify SEDA’s data, which we call data consumption. All they have to do is deploy a consumer contract that can verify SEDA-generated proofs. Then, a solver, which anyone can set up, can start supplying data to the destination network.

Overlay Network

The Overlay Network is a Multiparty Computation (MPC) network of nodes independent of the SEDA Chain Nodes.

The difference between the SEDA chain and the Overlay Network is that the SEDA Chain inherits the staking mechanism from the Cosmos SDK. In contrast, the Overlay Network’s staking scheme is similar to Ethereum 2.0’s staking. There is both a minimum and a maximum stake weight. This minimum stake weight incentivizes validators to run multiple instances of the Overlay Nodes if they want to stake more tokens than the maximum staking weight.

Programs

Programs are WASM binaries that Overlay Nodes directly execute. They are unique for a blockchain network because the nodes can execute HTTP requests. This type of execution means the nodes can query any data that’s either public or made available by the network.

Solvers

Solvers forward messages between the SEDA Chain and external chains. External-to-SEDA chain messages contain newly created data requests. The solver pays the gas cost of the request computation upfront to prevent solvers from being able to spam or DDoS attack the SEDA Chain with non-existent data requests. As a result, the solver receives rewards for bridging the result back to the destination network. SEDA-to-external chain messages relay the SEDA Chain state and data request results.

Anchors

The Anchor network aims to secure and trigger certain smart contract protocols across various networks based on the data SEDA provides.

Anchors add a layer of security to data requests by acting as a backstop mechanism. The output provided by the anchors acts as a backstop to SEDA Network's outcome. The destination network should not consume this outcome. Instead, the network can set a deviation threshold based on the type of data queried, which, if crossed, should result in a sensible action for the issuer's use case, e.g., this outcome gets ignored, and it reissues data requests.